The Central Bank of Nigeria has introduced new regulatory requirements for companies issuing foreign-currency stablecoins, such as USDT and USDC. According to TechCabal, issuers must now maintain at least ₦15 billion, approximately $11.16 million, in paid-up capital to operate in the Nigerian market. These issuers are also required to establish locally incorporated and licensed businesses, shifting the operational focus from foreign approvals to domestic financial structures. For naira-backed stablecoins, the capital requirement is set at ₦10 billion, or $7.44 million.
In addition to capital reserves, the new rules mandate a separate operational liquidity buffer of at least $10 million for foreign-currency issuers. This buffer is distinct from the reserves required to back the tokens themselves and may increase depending on the issuer's specific obligations in Nigeria. TechCabal notes that these measures are designed to protect customers by ensuring local supervision and accessible reserves, which can be critical if an issuer fails or cannot honor withdrawals.
Nigeria is not the only African nation tightening its grip on digital assets. TechCabal reported that Kenya introduced similar regulations in July, requiring stablecoin issuers to maintain KES 300 million in paid-up capital and register locally. Kenyan rules also mandate that companies hold at least 30% of funds received for stablecoin issuance in local bank trust accounts, with the remainder invested domestically. The goal in both countries is to ensure that international companies serving local users meet domestic financial standards rather than relying solely on foreign regulatory frameworks.
The implementation of these rules creates a complex landscape for stablecoin issuers. TechCabal suggests that if more African countries adopt separate capital, reserve, and licensing requirements, issuers may face the cost of establishing regulated operations in every market they serve. Large entities like Tether and Circle may be better positioned to absorb these costs, while smaller issuers might struggle to justify market entry. This could result in a patchwork of national stablecoin markets, each with distinct requirements, even though the digital tokens themselves move seamlessly across borders. The primary challenge remains making these transfers work legally across multiple African jurisdictions.